Over the past half year or so, the 'new energy industry chain' as a core theme has been able to strengthen independently, showing a widespread doubling trend during a bear market phase where the broader market performed extremely weakly.
Although there were significant changes in its industry fundamentals due to strong national policy support.
It was also clearly propelled by the institutional capital of 'Huayi Expedition No. 1', a main fund widely sought after by various market funds.
Now, 'Huayi Expedition No. 1', this main fund.
It began to massively take profits and withdraw from core stocks in the 'new energy industry chain' theme, which was very unexpected to him.
Originally, he thought that with clear changes in fundamental logic and continuously expanding market demand in the new energy industry, 'Huayi Expedition No. 1', this main fund product, would at least hold its core stock positions in this theme until subsequent performance realization.
He never expected... that the other party would start taking profits and withdrawing when speculation in this theme was in full swing, and the trend clearly had not yet peaked.
It began to take profits and withdraw.
"This is truly strange," Yang Shengfan frowned and said, "This position is clearly not a selling point at the end of the rally, and the expectations for the entire industry have not been met. Why would 'Huayi Expedition No. 1', this in-market main fund, massively reduce its positions at this point?"
"Could it be that the market rumors about the upcoming phase-out of 'new energy vehicle' subsidies are true?" Bao Yongquan responded, "If that's the case, then the investment logic for the entire 'new energy industry chain' theme and future expectations could reverse. In that scenario... 'Huayi Expedition No. 1', this in-market main fund reducing positions, taking profits, and exiting, would be logically sound."
Yang Shengfan stated firmly, "National policies do not change overnight. Such market rumors cannot be true. At most, there will be a crackdown on fraudulent subsidy schemes in the market. And if national regulatory authorities vigorously rectify these schemes, I believe it would actually be beneficial for the healthy future development of the domestic new energy industry chain."
"Mr. Yang doesn't think this is the reason?" Bao Yongquan asked.
Yang Shengfan responded, "Absolutely not. If it were this reason, other institutions positioned in the 'new energy industry chain' investment theme wouldn't show no unusual activity. But look at some of the core stock Dragon and Tiger List data disclosed today: apart from the 'Huaxin Securities Financial Street Fuxing Road' brokerage office, which is the trading seat of 'Huayi Expedition No. 1', all other selling capital accounts are active speculative funds, and their selling volumes are all around several million to ten million.
This indicates that other core main funds positioned in the 'new energy industry chain' theme. Have not been affected. Nor have they actively sold off following the selling of 'Huayi Expedition No. 1', this main fund.
On the contrary, on today's buying list, several institutions have absorbed a significant amount of the shares sold by 'Huayi Expedition No. 1', this main fund."
"Then what could be the reason?" Bao Yongquan asked, feeling a bit puzzled.
Yang Shengfan thought for a moment and said, "Currently, it's hard to guess accurately. Let's see what happens next. 'Huayi Expedition No. 1', this main fund product, is currently a star fund product in our A-share market, and its every move will receive special attention from everyone.
Such a large-scale reduction in positions by this fund must indicate other strategic plans. And this main capital has a very large fund size; once there are other unusual movements, the market will definitely notice. We just need to continue observing patiently."
"Previously, 'Huayi Expedition No. 1', this in-market main fund, must have established quite heavy positions in the 'new energy industry chain' theme, right?" Bao Yongquan thought for a moment and then added, "Based on the net asset value disclosed by 'Huayi Expedition No. 1' fund, the fund size of this product should have already exceeded 60 billion.
And if their allocation in the 'new energy industry chain' theme is around 20%. That would be a scale of approximately 12 billion. I am concerned that this capital's continued reduction in positions in the 'new energy industry chain' theme will bring a significant suppressive effect on the subsequent market development of the entire 'new energy industry chain' theme.
At the same time, because this main fund product has a huge influence in the market. Regardless of buying or selling, there will be significant follow-on trading. This will lead to more continued selling capital in the 'new energy industry chain' theme subsequently."
"Are you suggesting we also reduce positions and take profits on some shares, then wait for future expectations for this theme to become clearer, or for the market suppressive effect caused by the continuous selling of 'Huayi Expedition No. 1' to weaken, and then reacquire shares at a lower price, thereby reducing the drawdown of the fund's net asset value?"
Yang Shengfan looked at Bao Yongquan, smiled, and said, "Your idea isn't wrong, but the market doesn't necessarily move as we expect. Let's observe the support strength for the 'new energy industry chain' theme over the next few days. If, under the continued selling of 'Huayi Expedition No. 1', this main fund product.
The support strength for the core stocks related to the entire 'new energy industry chain' theme is still acceptable, with continuous external main funds absorbing the selling. Then we will maintain our current strategy and continue to hold long positions.
If, under the continued selling of 'Huayi Expedition No. 1', this main fund, follow-on selling capital increases and the market's ability to absorb selling continues to weaken. Then we will respect the market trend and the combined choice of in-market capital. And make corresponding reductions in positions at this point."
"Alright," Bao Yongquan said with a smile, "That's exactly what I meant."
And as the two discussed, regarding the adjustment of subsequent fund investment strategies...
At this time, other institutional parties, as well as active capital groups still contending and investing in the market, along with numerous speculative funds and retail investor groups.
Half a year later, regarding the 'Huaxin Securities Financial Street Fuxing Road' trading seat.
Its reappearance on the Dragon and Tiger List of both markets.
Was still the subject of extremely intense discussion and exchange.
And everyone was intensely debating and speculating heavily about 'Huayi Expedition No. 1', this main fund product's next investment move after reducing its holdings in the 'new energy industry chain' theme.
"'Fuxing Road', this capital group, sold 500 million in the 'new energy industry chain' theme in one day!"
"I'm afraid it's more than that. This is just among the listed stocks; 'Fuxing Road' sold 500 million. What about the unlisted ones? Currently, the 'Fuxing Road' trading seat is the commonly used seat for 'Huayi Expedition No. 1' main fund product under 'Huayi Capital', managed by Mr. Su. The fund size now cannot be compared to when Mr. Su first operated this seat."
"Mr. Su's 'Huayi Expedition No. 1' fund product, by massively and persistently holding core stocks in the 'new energy industry chain' theme at this time, does this mean Mr. Su believes the rally for this main sector has peaked?"
"I feel like the rally shouldn't have peaked yet, right?"
"Regardless of whether it has peaked or not, it's best not to touch any main sector where Mr. Su is reducing his holdings."
"Exactly, you can't go wrong following Mr. Su's operations."
"'Huayi Expedition No. 1' fund product, currently managed by Mr. Su, which main holding sectors can be confirmed, by the way... which ones are they?"
"In the pharmaceutical sector, 'Hengrui Medicine'; in the consumer sector, 'Gree', 'Midea', 'Maotai', 'Wuliangye', 'Luzhou Laojiao'... these stocks should be well-known, and they are also the sectors and stocks heavily weighted in 'Huayi Expedition No. 1' fund product managed by Mr. Su."
"It feels like Mr. Su is really fond of the 'Baijiu' sector now!"
"Why does Mr. Su's current investment style feel completely different from before, leaning more and more towards a public fund style?"
"With a fund size of tens of billions, he naturally can't operate like before."
"Alas, without Mr. Su leading the market, short-term trading is really difficult this year."
"Exactly, the market environment is too poor now."
"I really miss when Mr. Su used the 'Fuxing Road' seat to dominate short-term market sentiment and speculate on market 'monster stocks.' Back then, as long as you followed Mr. Su's trading seat, making money was incredibly easy."
"Can't we still follow him now? It's just that after Mr. Su's operating style changed, we need to have more patience."
"It feels like it's not just Mr. Su's operating style that has changed, but the style of the entire market. This year, the trend of blue-chip stocks with strong performance is clearly better than that of concept stocks, and the trends of the Shanghai Composite Index, CSI 300 Index, and A50 Index are also clearly better than that of the ChiNext board."
"Exactly, the active speculative funds from before have either quietly exited the market or started to change their thinking."
"Let's see what Mr. Su's next move is."
"It feels like Mr. Su's reduction in stock positions in the 'new energy industry chain' isn't an exit, but rather preparation for rebalancing positions."
"Mr. Su is one of the few remaining steadfast bulls in this market. If even Mr. Su starts to significantly reduce positions and stops playing, then I'll definitely go to cash and stop playing too."
"Definitely not. The next main theme for Mr. Su's rebalancing will absolutely be an excellent subsequent market opportunity."
Amidst the market, countless investor groups were discussing the 'Fuxing Road' trading seat and 'Huayi Expedition No. 1', this main fund product in the market, massively reducing its holdings in core stocks of the 'new energy industry chain'.
As everyone was speculating about the next rebalancing move of this private equity fund product, which was already a domestic star, then...
On Friday, July 29th, under the leadership of Su Yi.
The entire trading department of 'Huayi Expedition No. 1' fund product, with each trading team, began to execute the pre-determined investment strategy: while continuing to reduce stock positions in the 'new energy industry chain' theme, they simultaneously bought core stocks in the 'coal' and 'security lenses' sectors that were still at the bottom and received little capital attention.
They also entered the Hong Kong stock market through dedicated trading accounts to buy domestic property stocks that were similarly unnoticed.
(End of Chapter)